Calculator
Rent vs buy calculator
Buying isn't automatically better than renting — it depends on how long you stay. This calculator finds your break-even year, when the total cost of owning finally drops below the cost of renting the same home.
Buying pays off after
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- Buy cost @ 5 yrs
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- Rent cost @ 5 yrs
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- Monthly payment (PITI)
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Simplified: excludes maintenance, appreciation, and tax effects. 1.38% MI tax and insurance included.
Why "how long you'll stay" is the whole question
Buying front-loads big costs — the down payment and several thousand in closing costs — that only pay back over time as you build equity and stop paying a landlord. Rent, meanwhile, tends to rise every year. The two lines cross at your break-even year: stay past it and buying wins; move before it and renting was the cheaper call.
In much of Michigan, where prices sit below the national median, that crossover often arrives within a few years. Once you know roughly how long you'll stay, size a real payment in the payment calculator and see what you can afford with the affordability calculator.
Frequently asked questions
Is it cheaper to rent or buy in Michigan?
It depends on how long you stay. Buying carries big upfront costs (down payment and closing) that only pay off if you own long enough to build equity and spread those costs out. In much of Michigan, where prices sit below the national median, the break-even often lands around 3–5 years.
What is the break-even point for buying?
The number of years at which the total cost of buying — including your down payment, closing costs, and monthly payments minus the equity you build — drops below the total cost of renting the same home. Before that point, renting is usually cheaper; after it, buying pulls ahead.
What costs does this calculator leave out?
It's a simplified comparison — it doesn't model maintenance, tax deductions, home appreciation, or the return you'd earn investing a down payment instead. Use it to gauge the rough break-even, then run a real payment in the payment calculator.